FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of June, 2023
Brazilian Distribution Company
(Translation of Registrant’s Name Into English)
Av. Brigadeiro Luiz Antonio,
3142 São Paulo, SP 01402-901
Brazil
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F)
Form 20-F X Form 40-F
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (1)):
Yes ___ No X
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (7)):
Yes ___ No X
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ___ No X
COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO
Publicly Held Company with Authorized Capital
CNPJ/ME Noº 47.508.411/0001-56
NIRE 35.300.089.901
NOTICE TO THE MARKET
Companhia Brasileira de Distribuição (“GPA” or “Company”), pursuant to Law No. 6,404, of December 15, 1976, as in force and Resolution No. 44, of August 23, 2021 of the Brazilian Securities Commission (CVM), informs its shareholders and the market in general what follows.
The Company celebrated a Sale and Leaseback transaction, by signing a Private Agreement of Commitment to Purchase and Sell Real Estate for Subsequent Lease and Other Covenants (“Agreement”), with the purpose of selling 11 GPA supermarket stores to a private fund, each consisting of one or more properties duly identified in the Agreement (“Stores”), for the total value of R$ 330 million, observed that, following its formalization, the parties will enter into lease agreements for each one of the properties comprising the Stores, according to the draft attached to the Agreement (“Lease Agreements”).
The Lease Agreements shall have an initial term of 15 years, with the exception of 3 Stores that shall have an initial term of 18 years, renewable for an additional term of the same respective period, ensuring the continuity of GPA's operations at the Stores in sustainable financial conditions, with a cap rate of less than 9%.
The operation is part of the plan to reduce the Company's financial leverage throughout 2023 and 2024, contributing to the reduction of the net debt and reinforcement of its capital structure. Within the context of the leverage reduction plan, the Company expects to: (i) complete the sale of non-core assets; (ii) implement operational improvements aiming to achieve the adjusted EBITDA margin target of 8% to 9% in 2024, as per the projection disclosed on the material fact published on December 7, 2022; (iii) reduction on excessive stores’ inventory; and (iv) sell its remaining stake in Grupo Éxito's after the ongoing segregation process.
GPA will keep the market and its shareholders informed of any new information on the matter.
São Paulo, June 19th, 2023.
Guillaume Marie Didier Gras
Vice President of Finance and Investor Relations Officer
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO | |||
Date: June 19, 2023 | By: /s/ Marcelo Pimentel | ||
Name: | Marcelo Pimentel | ||
Title: | Chief Executive Officer | ||
By: /s/ Guillaume Marie Didier Gras | |||
Name: | Guillaume Marie Didier Gras | ||
Title: | Investor Relations Officer |
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.